BOARD01797

• Board Meeting Date: 11/19/2001
• Description: CF Section - City of Florence
• Board Meetings - Doc Type: Memo

City of Florence
November 19-20. 2001

Agenda Item 26a.

Staff Comments

The Scope of Work for this study addresses the technical aspects of the project. The study
should be expanded to inciude economic and financial e\(aluation of the project so that it would
form the basis for a future CWCB loan.

This funding request is in the category "Feasibility Studies.....that have a significant potential to
result in loans from either the Construction Fund or the Severance Tax Fund Perpetual Base
Account", from Policy #14 (Non-reimbursable Project InvEjstments)

The CWCB Finance Committee reviewed this non-reimbl)rsable funding request at its September
23, 2001 meeting. The committee recommended that the CWCB Board approve the request at
the November 19-20, 2001 Board meeting.

The City of Florence has requested that funds be made available as soon as possible, so that the
Study can proceed this winter. (Funding through the Construction Fund would not be available
until summer 2002.) The Feasibility Study Small Grant Fund (CRS 37-60-122.7) is a source of
immediate funding for studies that will likely develop into raw water projects financed by a CWCB
loan. (There is currently $180,000 available in this fund.)

Staff Recommendation

Staff recommends:

That the CWCB approve non-reimbursable funding in amount of $33,000 to the City of Florence
to conduct a Feasibility Study to evaluate construction of the Oak Creek Reservoir.

That the eWCB approve funding for the study from th~ Feasibility Study Small Grant Fund
(CRS 37-60-122.7) .

That the approval be contingent upon a revised Scope of Work which includes evaluation of the
financial and economic aspects of the project, and upon all other standard contracting provisions
of the CWCB.

C:\wp51\proj.newlFlorence 1101 memo

L:\boardmem\Nov01\26a Nov 01 Florence

2

,

. \

.

e

.e